Circular
Comments Requested on Basel II and Market Risk Proposed Rulemakings
September 6, 2006
Circular No. 11808

To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:

The federal bank and thrift regulatory agencies have announced that they will request public comment on a notice of proposed rulemaking (NPR) that would implement new risk-based capital requirements in the United States for large, internationally active banking organizations.

The NPR details the agencies' plans for implementing the Basel Committee on Banking Supervision's (BCBS) new capital accord (Basel II) that was issued in 2004. The agencies also will request comment on proposed Basel II supervisory reporting templates.

In March of this year, the Board released a preliminary draft of the Basel II NPR. The final document, which will be published in the Federal Register shortly, differs in some respects from the March draft and should be used as the basis for comments.

Separately, the agencies announced that they will request comment on proposed revisions to the market risk capital rules that the Office of the Comptroller of the Currency, the Board and the Federal Deposit Insurance Corporation have used since 1997 for banking organizations with significant exposure to market risk.

The notice of proposed rulemaking on the market risk capital rule would implement changes the BCBS approved in 2005 and also would apply to certain savings associations, which currently are not covered under the rule.

The agencies will also seek comment on proposed supervisory reporting templates related to the market risk capital rule.

Comments on the proposals are requested within 120 days of publication in the Federal Register.

See the attached press release for full details.

Press release OFFSITE

Basel II
Notice of proposed rulemaking OFFSITE
Federal Register notice regarding supervisory reporting templates OFFSITE PDF

Market risk
Notice of proposed rulemaking OFFSITE PDF
Federal Register notice regarding supervisory reporting templates OFFSITE PDF

Public Information
General.info@ny.frb.org
(212) 720-6130